Paraguay Population: 6,862,812

Paraguay achieved its independence from Spain in 1811. In the disastrous War of the Triple Alliance (1865-70) - between Paraguay and Argentina, Brazil, and Uruguay - Paraguay lost two-thirds of its adult males and much of its territory. The country stagnated economically for the next half century. Following the Chaco War of 1932-35 with Bolivia, Paraguay gained a large part of the Chaco lowland region. The 35-year military dictatorship of Alfredo STROESSNER ended in 1989, and, despite a marked increase in political infighting in recent years, Paraguay has held relatively free and regular presidential elections since the country's return to democracy.

conventional long form: Republic of Paraguay conventional short form: Paraguay local long form: Republica del Paraguay local short form: Paraguay etymology: the precise meaning of the name Paraguay is unclear, but it seems to derive from the river of the same name; one explanation has the name meaning "water of the Payagua" (an indigenous tribe that lived along the river)

civil law system with influences from Argentine, Spanish, Roman, and French civil law models; judicial review of legislative acts in Supreme Court of Justice

Suffrage:

18 years of age; universal and compulsory until the age of 75

Executive branch:

chief of state: President Horacio CARTES Jara (since 15 August 2013); Vice President Juan AFARA Maciel (since 15 August 2013); note - the president is both chief of state and head of government

head of government: President Horacio CARTES Jara (since 15 August 2013); Vice President Juan AFARA Maciel (since 15 August 2013)

cabinet: Council of Ministers appointed by the president elections/appointments: president and vice president directly elected on the same ballot by simple majority popular vote for a single 5-year term; election last held on 21 April 2013 (next to be held in April 2018)

description: bicameral National Congress or Congreso Nacional consists of the Chamber of Senators or Camara de Senadores (45 seats; members directly elected in a single nationwide constituency by proportional representation vote to serve 5-year terms) and the Chamber of Deputies or Camara de Diputados (80 seats; members directly elected in 18 multi-seat constituencies - corresponding to the country's 17 departments and capital city - by proportional representation vote to serve 5-year terms)

elections: Chamber of Senators - last held on 21 April 2013 (next to be held in April 2018); Chamber of Deputies - last held on 21 April 2013 (next to be held in April 2018)

highest court(s): Supreme Court of Justice or Corte Suprema de Justicia (consists of 9 justices divided 3 each into the Constitutional Court, Civil and Commercial Chamber, and Criminal Division judge selection and term of office: justices proposed by the Council of Magistrates or Consejo de la Magistratura, a 6-member independent body, and appointed by the Chamber of Senators with presidential concurrence; judges appointed until mandatory retirement at age 75

Landlocked Paraguay has a market economy distinguished by a large informal sector, featuring re-export of imported consumer goods to neighboring countries, as well as the activities of thousands of microenterprises and urban street vendors. A large percentage of the population, especially in rural areas, derives its living from agricultural activity, often on a subsistence basis. Because of the importance of the informal sector, accurate economic measures are difficult to obtain. On a per capita basis, real income has stagnated at 1980 levels. The economy grew rapidly between 2003 and 2008 as growing world demand for commodities combined with high prices and favorable weather to support Paraguay's commodity-based export expansion. Paraguay is the sixth largest soy producer in the world. Drought hit in 2008, reducing agricultural exports and slowing the economy even before the onset of the global recession. The economy fell 3.8% in 2009, as lower world demand and commodity prices caused exports to contract. The government reacted by introducing fiscal and monetary stimulus packages. Growth resumed in 2010, and has been erratic, although positive, ever since. Severe drought and outbreaks of foot-and-mouth disease led to a drop in beef and other agricultural exports. In addition to the agricultural challenges, political uncertainty, corruption, limited progress on structural reform, and deficient infrastructure are the main obstacles to long-term growth.

18 years of age for compulsory and voluntary military service; conscript service obligation is 12 months for Army, 24 months for Navy; volunteers for the Air Force must be younger than 22 years of age with a secondary school diploma (2012)

major illicit producer of cannabis, most or all of which is consumed in Brazil, Argentina, and Chile; transshipment country for Andean cocaine headed for Brazil, other Southern Cone markets, and Europe; weak border controls, extensive corruption and money-laundering activity, especially in the Tri-Border Area; weak anti-money-laundering laws and enforcement